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Updated over 4 years ago,
Home Relocation - NO RENOVATION NEEDED
For anyone experienced in buying a home that needs to be moved to a new lot!
It’s a 3 BR 2 BA at 1700 sqft, bought in the middle of a neighborhood where million dollar homes are popping up for 400k. My assumption was that the owner has the intention to tear it down and build from the ground up. Then he/she must have thought, instead of paying to tear it down, lets see if we can get cash for the property. The home is listed at 60k, and I would be responsible for the moving etc.
Called the agent and he confirmed what I thought. He said that they would either TEAR IT DOWN OR DONATE IT IF IT DIDN'T SELL, which makes me think I could get it even lower if I played my cards right. I found a lot for sale for 35k in an area where the ARV (or in this case the relocation) value is easily 230k.. probably 240k+. This is preliminary... could probably find an even better lot at higher cost with an even higher resale value.
I’m doing math and trying to estimate foundation costs, plumbing, electricity, transporting the actual home, etc. and I’m getting about 120k as a max…. does that seem low? And say I didn’t negotiate the price down on the home at all.. that’s still 50k profit after holding costs in the middle… pretty great return.
The last piece is lenders, because I’m sure they treat these scenarios differently. Sorry for the long winded message! Was curious on everyones perspective. Would require a lot more legwork than a flip, but the potential return seems too good to be true?